Bush and His New Tax Rebate Plan
Posted: Monday, January 21, 2008
by Rebecca Ashby
http://www.rmashby.com
As I watched CNBC's Dow Jones stock numbers in a split screen with George W. Bushs speech about pumping up our failing economy with tax rebate checks, I was in shock to see the ticker prices drop like a lead balloon. What crossed my mind was wow, it's "too little, too late." The global markets took a big plunge also, evidently because of Mr. Bush's statements. The Fed chief, Mr. Bernanke, also urged Congress to originate a package to stimulate our economy. All of this is fine and well but if the politicians had asked the people months ago, they would have told the government to do something about this ongoing recession.
The government is constantly "a day late and a dollar short." I understand that our government is a massive bureaucracy with an excessive amount of red tape but these politicians have got to start doing their jobs! We, on the lower echelon of the financial curve are suffering. Our representatives have allowed our currency to depreciate; we just keep printing more money! The subprime debacle and the credit squeeze have left the middle class with virtually no options. I say "shape up or ship out" to all of our current politicians!
Segment Two
It looks like our politicians have finally decided to work together, at least on this one stimulus package, in order to boost our current economic slump. The package does not include increased food stamp benefits or extended unemployment benefits but it does include a rebate check for those who made at least $3,000 and sets the boundaries of the rebates at $75,000. The package puts some extra money into the hands of small business owners and last, but certainly not least, this package boosts the high end limits of the government's lending programs, Freddie Mac and Fannie Mae, from $417,000 to $625,000 thus allowing folks who want to buy housing in upper end markets a chance to do so at a lower interest rate. The bill still has to be passed by the Senate. Those rebate checks could arrive in your mailbox in approximately three months.
Segment Three
The Senate is due to vote on the stimulus bill, passed by the House last week, on Wednesday, Feb. 6 th . It's quite possible that the Senate will attach additional weeks of unemployment compensation and other items to the version they endorse. Why Wednesday, you ask, because Tuesday three senators will be competing in the "Super Tuesday" primaries.
The Senate has failed to pass the House bill, choosing instead to tack on benefits for the elderly, the disabled, extended unemployment compensation and more breaks for business. This economic stimulus package is stuck in limbo.
The Congress has passed $168 billion stimulus bill. Most individuals will receive $600. Social Security recipients will receive $300. The President has said he will sign the bill early next week.
President Bush signed the economic stimulus bill today. The $162 billion stimulus package will now also include 20 million seniors and 250,000 disabled veterans. In addition Fannie and Freddie will increase their loan limits to $729,750 for one year. The total additional cost to add seniors and veterans is $9 billion. The rebate checks are due out in May! Too little, too late, you decide.
The IRS will be sending out letters to explain the rebate process as early as next week. You must file a tax return to be eligible for the rebate.
The IRS will be sending out letters to explain the rebate process as early as next week. You must file a tax return to be eligible for the rebate.
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Top-level comments on this article: (1 total)Rebecca, Nicely done. Thanks
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